Where will Asia Go? Ask Singapore!
Can Singapore drive the growth of Asia? Surely, you must be joking. However, John Nesheim, our guest contributor from Silicon Valley offers another perspective to how the youth in Singapore can overcome the Asian disease and start innovating without fear. He is also an author to the book, The Power of Unfair Advantage, an established angel investor in the valley and a jedi master to some of our resident contributors here.
Contributed by John Nesheim
Singapore is a favorite of mine because to me it is a riddle: “How can you sin legally in Singapore?†I first came to the little city-state a quarter of a century ago when Raffles was a high rise and chewing gum jokes were famous world-wide. I arrived with National Semiconductor, the electronics revolution and the rest is history. Now high rise towers surround tiny Raffles and the jokes are about how casinos will come to Singapore: “Hey, did you hear Singapore has figured out how to have gambling places that fit the rules of the city-state fathers? They are going to out-source the management to nuns!â€Â
Yes, we all laugh but we also have our respectful business eyes on Singapore. It is a marvel of transformation, Asian-style, from poverty to riches, a microcosm of a cosmopolitian city with hundreds of languages, places to worship and shop until you drop. And of course a restaurant on every corner.
We wonder what will come next because – as I see it – Singapore is the “rudder of Asia,†that little thing at the end of a great ship that steers the large vessel and precious contents safely to its destination. In other words, “as Singapore has gone, so will Asia.†From centrally led economics and political policies to attracting and exploiting the latest technology waves, Singapore has shown how prosper in the face of awesome challenges and has done it over and over, year after year. At least up to today.
I am optimistic about what could happen in Asia because of Singapore. My Singapore glass is half full. I have several reasons. For instance, my students from Singapore are heavy risk takers (unlike their parents who prefered to follow the directions of Singapore Inc. and thus became wealthy). These young people are innovative, understand what a world-class new enterprise is and are ambitious to start one. They have the same mantra as the rest of the youth of today’s world: “Have passport, have laptop, mobile phone, will travel!†They do travel, a lot, and find places to take real risks, learning and prospering. And they return to Singapore. In their daily blogs I note how much they enjoy returning home to eat that wonderful local food! All of this is scary to their parents, but we all know that for each new generation of kids that is how it is. There is no stopping it. It has a life and energy of its own.
Their world starts each day with communications over the Internet about “cool ideas†for new enterprises. In just a few minutes they share plans for fresh companies: to either join them (for a while) or to start one. Many start work in giant corporations, but are constantly on the lookout for a great idea. That was not so even a decade ago in Singapore. But that is what is blogged daily by young Singaporeans.
The other reason I am optimistic about the future for Singapore is because many of its youth understand what it takes to build an “unfair competitive advantage.†That is a collection of elements that make up a business plan so powerful that their competition complains “That is unfair!†I explain more about that concept in my recent book, “The Power of Unfair Advantage.†With that understanding, those young Singaporians require no local protection or favors from the government. They run away from such dreaded crutches. Instead, they are eager to compete at the world-class level, on the open competitive field, able to run with the best. They are confident they can and will do that.
And they are wise about avoiding the “The Asian Disease.†That is the dreaded claim to fame of most Asian want-to-be entrepreneurs: “I can make that cheaper, faster, better.†Thousands in China and India said that yesterday, will say it today and tomorrow. They have no innovation with lasting value to offer, just a lower cost knock-off. And six months later they are overtaken, leapfrogged, by an equally ambitious and naive new arrival. And so it goes, month after month. Making a good profit is hell. That is one reason Asia has so few global brands that stand for anything other than “We are a very large Asian corporation.†They do not have an unfair advantage able to compete on a global scale. They are trying to learn. Some will get it.
Instead of the catching the Asian Disease, the youth of Singapore wisely respect the need to innovate. They know they must do something important that has never been done before, solving big, difficult, important problems. That is central to creating an unfair advantage. It is what made Silicon Valley the envy of the world. This is remarkably explained in David Warsh’s new book, “Knowledge and the Wealth of Nations.†In it he explains why “knowledge is our most powerful engine of production . . . with people, idea and things†that matter, driving technological change and entrepreneurial creativity.
Some leaders of Singapore also understand that and have been courageous to encourage it. Recent entrepreneurial programs are impressive. But as I watch what is going on, at least as I see it, to build unfair advantages in Singapore requires one more step to take before the bird can leave the nest and fly: Father has to let go.
The kids have to be encouraged to take risks that parents are terrified of. They have to be let free to break the rules (even the remaining ones put into place to protect Singaporeans over decades by well-intended city fathers). You can’t run a race with crutches and expect to win. It’s a rough world out there and competition is intense. Young people don’t run to work in a boring country. The local culture has to be cool and hot at the same time. But the amazing thing to me is that the young men and women of Singapore are eager to compete. On their own. They believe in themselves and are confident they can use Singapore to help build world-class competitors that have powerful unfair advantages. They can build the great brands of Asia. They are already on their way. So either lead, follow, or get out of the way! The race is going to be exciting. I’m cheering for them. I hope you are also.
Related Links: The Entrepreneur’s Bookshelf: The Power of Unfair Advantage.
2006 August 2
Carmel, California
John L. Nesheim
www.nesheimgroup.com
john@nesheimgroup.com
About John Nesheim (from his blog): John Nesheim is an engineer and veteran of Silicon Valley. Since 1976, he has focused his research on how to improve the process of converting an idea into a world-class new enterprise. Mr. Nesheim teaches entrepreneurship for Cornell University and other schools in Asia and Europe. He is founder of the Nesheim Group, coaches CEOs of new enterprises and consults on entrepreneurship for corporations and governments.
His research findings led to discovery and documentation of the process “14 Steps to IPO” which are documented in his best-selling book, High Tech Start Up. Translated into four languages, it is used around the world by entrepreneurs, investors, governments, universities, corporations, and Wall Street to increase understanding of entrepreneurial effectiveness.
If you like to know more about John Nesheim and his tips on real startups, you can check out his blog as well.
Here is a new article about his book The Power of Unfair Advantage “a gold mine” - Business Week
Editor’s Note: We thank John for contributing this article to us in SG Entrepreneurs, and hope that his article will inspire our youth along the next few days to our 41th National Day.
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9 Comments, Comment or Ping
justinlee
kudos to John for writing this as he’s right on about the entrepreneurial pulse in Singapore and the having been the advisor to Singapore’s public policies in entrepreneurship and teacher to a whole new generation of students he’s really the man at the forefront of high technology entrepreneurship and building that competitive advantage.
Aug 4th, 2006
troodon
I don’t quite agree with his views. I feel that he’s just another foreigner paid to say good things about Singapore. The truth is, while Singaporeans go on babbling about how to create companies, how to teach entrepreneurship in schools, smart enterprising people from other developing economies(like China) are already creating world-class businesses. Wake me up when Singapore really does start making real companies(other than Creative) that the world respects. Until then, it’s mainly just hogwash. This whole “becoming entrepreneurs” thing is such a joke. In many other asian countries(Taiwan, China, Korea), people don’t just talk about it, they DO it. Also, they don’t go around trying to teach this stuff. It’s hilarious that Singaporeans need everything taught to them(or they need to take a course on it, or they need some government training programme) before they know how to “do it”. Simply hilarious.
Aug 5th, 2006
John
Troodon, what is inhibiting you from starting a world-class business, regardless of where? Why don’t you just DO it? Are you simply too comfortable in Singapore? Or are you already doing a world-class new enterprise in China or somewhere else? What do you think you need to change in yourself to produce the next Google? Or are you fated to remain a “glass is half full person” for life?
Aug 5th, 2006
claris tan
Troodon, I see your point.
our education system used to “groom” us with mindset of working for MNC and company. But now, Singapore needs entrepreneurs in order to bring the country to next level. With MNC seeking for business advantage and lower cost in other countries, the advantage Singapore has today is stability and “efficiency in term of getting things done”. However, it will be matter of time, before this advantages is catching up by other countries. Therefore, Singapore needs a way to create awareness of entrepreneurship and encourage setting up of local companies to bring job to local ppl. What’s better way is to formally “educate” and “support” entrepreneurship. Whether this work or not remain to be see. As it is said to have “any plan, whether if it is effective or not, than to have no plan at all”, the same thing happen to entrepreneurship. No one can really tell whether it will succeed or not for entrepreneur. At least, the best they can do is to try.
Rather than let nature takes it course in term of entrepreneurship flourishing in Singapore (which may take a long time), the gov want to accelerate the process by creating awareness and educating. It may work for some. Some may find it foolish, however if it manage to “awake” even some minority to give a try, it already succeed in its programmes.
Whether John Nesheim is paid to say good thing or whether John make his impression of Singapore through working with his group of “committed and passionate Singaporean” or not is not the real issue.
The thing is that Singapore has to do whatever to create and encourage entrepreneurship, and the method it do so does not really matter. The end result is what really matter.
Aug 5th, 2006
troodon
John:
I’m not working in Singapore. And I’m most definitely not contented with following the status quo. Currently, I’m working in the bay area(doing “it”) realizing my dreams. How about you?
Aug 5th, 2006
John
Troodan, you can find me busy coaching companies around the world from here in Carmel, California. The Internet is a wonderful vehicle. Feel free to call for a chat, visit my blog or otherwise communicate about your entrepreneurial ambitions.
My goal is to stimulate local entrepreneurs, such as in Singapore, to think differently about converting an idea to a world-class business that goes IPO on NASDAQ within five years, regardless of where they decide to locate the company. The Singapore government does not pay me.
Claris Tan is right on the mark (see above): we must encourage and support the wannabes, so the chicks take a chance and try to fly. It is a lot easier to do when the locals (culture, parents and peeers and government) are cheering for you (e.g. in Silicon Valley and China, and now Singapore) instead of making your life difficult .
So I challenge you to make your contribution by example. What can you do to add to the support for wannabe entrepreneurs in Singapore? Perhaps the best way is to form a core team to do a world-class new enterprise, as others from Singapore have done from the Bay area (e.g. Peng Ong). Or find a startup to join and start learning on the job. We what to see you put your good mind and talent to work, showing how you DO it. We’d love to be invited to your IPO party!
Aug 5th, 2006
BL
Troodon,
Just to let you know, John has kindly written this article for SG Entrepreneurs out of good will. Actually the best part is that we have never met in real life.
In response to your opinion, here are my thoughts:
1. Singaporeans have the tendency of being molly-coddled into following what the government proposes. Creative is not the only company that has reached good heights. Have you heard of Cygenics (biotech company) and Hyflux (water company)? There are two parts to teaching people to start an enterprise: 1. the financial education and how to present the idea in the form of a business plan and 2. your own personal instinct to do it.
2. People don’t talk about it here and we practice it as well. Maybe you should take a look at the links page. There are quite a lot of entrepreneurs and investors blogging about their experience. To most of us, it is social service to help the community. At least I have been writing from my experience of starting 2 biotech companies (1 failed and 1 succeeded - proof of concept worked and now going into a series B funding in the UK). Yes, I work as an academic and an entrepreneur. Why I am back here is because I am here to serve my bond. But it does not stop me from starting things up.
There is a chinese saying to this, “Men who cannot do it themselves should not stop others from doing it.” John and I are blessed with Singaporean students who learn the trade and want to do it to change the world.
Aug 5th, 2006
Anonymous
Troodon, I do agree with what you say in someway..But still I think some other people need encouragement. Not everybody who are born, are naturally born to be entrepreneurs. Just like leaders. Not everybody who are born are natural born leaders. And if we only encourage natural born leaders who possess natural born leader traits then it’s going to be hard infact we will have lack of managers in this world. How many here are genetically naturally born leaders to become managers? And if they are not genetically born leaders to become managers, could they actually become a manager someday? The answer is yes, and they can still get trained to become a manager through studies/thru different experience.
Many people want to start a business but they don’t really know how to start? And that doesn’t mean they can’t be entrepreneurs.
Some just don’t know where to start that’s all provided they have the funds. But they need further information or further research and from this blog I can see they(admin,BL,wannapreneur,John etc etc) are trying their best to provide information and also encouragement to encourage their fellow singaporean.
I can say Singapore still have chance to developed or innovate a new product. But depend on what area they are trying to focus on? For example maybe they can’t compete in IT market. But still that doesn’t mean there is no other ways to improve or compete globally..
Nowadays not only about technology, But I can say Singapore still can make a mark if they focus on the food industry bringing the flavour of Singapore out to many different countries.
And their local food products can establish a name..For example, Like DODO fish balls are actually becoming popular..We know it’s Made in Singapore.
And don’t underestimate this little pack of fishball. If it become Asian favourite it can become a hit as well..When people living in Overseas longed to taste their homely flavour which I called it the ping pong ball fish balls…
The fishballs are good sellers at supermarket and people need food as basic necessities..But of course I do not just mean fishball alone..There could be other things as well to look at..
And I think whether foreigners or not, At least every individual had the rights to speak up..Give others a chance..An outsider sometimes can look further beyond the facade that one is looking at.. ;)
Aug 6th, 2006
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